I was laid off from my job last July and have been collecting unemployment benefits. But I always checked 'yes' to have federal taxes taken out of my benefits so I wouldn't have to pay when I filed.
I am using TurboTax, and initially it said my federal return was going to be over $1600 (plus my state return of $1100) so I was expecting a nice fat check. But as soon as a entered my unemployment benefits as income, my federal return dropped to $27!!!! Why did it drop if I already had the taxes taken out of it???
I am using TurboTax, and initially it said my federal return was going to be over $1600 (plus my state return of $1100) so I was expecting a nice fat check. But as soon as a entered my unemployment benefits as income, my federal return dropped to $27!!!! Why did it drop if I already had the taxes taken out of it???